USD/JPY Price Forecast – US Dollar Pressing Highs AgainThe US dollar rallied during trading against the Japanese yen on Thursday, as we continue to break above the ¥110 level. However, it should be noted that there is a significant amount of resistance in this general vicinity, as denoted by the shooting star from Tuesday.
The US dollar has rallied a bit during the trading session on Thursday, digging into the shooting star from Tuesday. This suggests that the area just above is rather resistive, but it’s clear that the tenacity of this rally cannot be denied. We are a bit extended, so the short-term pullback over the last couple of days makes quite a bit of sense, and therefore it’s somewhat welcomed. As this pair follows the S&P 500, pay attention to that market as well, because it gives you an idea as to where risk appetite is.
USD/JPY Video 17.01.20
To the upside, if we can break above the shooting star from the Tuesday session, it’s very likely that the US dollar rises towards the ¥111 level, where we see a bit of a gap. Furthermore, if we can break above there then the market probably goes looking towards the ¥112.33 level which is the 100% Fibonacci retracement level.
A pullback from here will more than likely find support again at the ¥109.50 level, or at the very least the red 50 day EMA which is basically at the ¥109 level underneath. That being said, I look at pullbacks as an opportunity to pick up value, but I am the first to admit that it seems less likely that we get a significant pullback based upon the momentum that I have seen intraday. I am bullish and have no interest in shorting this pair anytime soon and believe that we are going much higher over the next several months.
Please let us know what you think in the comments below